Overview of EIA-Book

8/3/2019 Overview of EIA-Book

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Overview of Environmental Impact

Assessment in Ethiopia

Gaps and Challenges

Mellese Damtie

andMesfin Bayou


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Overview of Environmental Impact Assessment

in Ethiopia

Written by: Mellese Damtie and Mesfine Bayou

Reviewed by: Solomon Kebede, Head, Impact Assessment Service,Environmental Protection Authority.

Edited by: Nicholas Benequista

Cover Design by: Aynalem Melesse

Cover Photos by: EPA and MELCA Mahiber

** This publication is supported by Heinrich Bll Foundation


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Published and distributed by:

MELCA Mahiber

P.O.Box 1519 Code 1250

Addis Ababa, Ethiopia

Tel.: +251 11 550 7172+251 911 402 403

E-mail: [email protected]

www.melca-ethiopia.org

There is no copyright on this book. Any information in this book can be

freely shared. However, acknowledgement of the source book would be

appreciated.

MELCA Mahiber

January 2008


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Table of Contents

About MELCA...................................................................................i

1 Introduction................................................................................. 1

2 Background ................................................................................. 1

3 International Instruments and the EIA ........................................ 6

4 Country Experiences ................................................................... 9

4.1 African Countries .................................................................. 9

4.1.1 Trends in EIA use.......................................................... 104.1.2 The focal organs for the EIA process............................ 11

4.1.3 Capacity to conduct EIA ............................................... 12

4.2 Serbia................................................................................... 15

5 The EIA System in Ethiopia...................................................... 16

5.1 Policy Framework for EIA.................................................. 17

5.2 Legal Framework for EIA................................................... 18

5.2.1 The FDRE Constitution................................................. 18

5.2.2 Environmental impact assessment law.......................... 19

5.3 Sectoral Laws Relevant to EIA ........................................... 21

5.3.1 Business law.................................................................. 21

5.3.2 Investment law .............................................................. 22

5.3.3 Land law........................................................................ 25

5.3.4 Fishery law .................................................................... 26

5.3.5 Wildlife law................................................................... 27

5.3.6 Water law ...................................................................... 28

5.3.7 Mining law .................................................................... 29

5.3.8 Genetic resource law ..................................................... 30


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5.4 The Institutional Framework of EIA................................... 30

5.4.1 Environmental protection organs .................................. 31

5.4.2 Sectoral institutions relevant to EIA ............................. 33

6 Gaps and Challenges ................................................................. 37

6.1 Lack of Awareness.............................................................. 39

6.2 Problems of Capacity .......................................................... 40

6.3 Absence of Effective Mechanisms for the EIA Process ..... 43

6.4 Lack of Incentives ............................................................... 50

6.5 Weak Political Commitment ............................................... 52

6.6 Weak Public Participation................................................... 56

7 Conclusions and Recommendations.......................................... 58

References ....................................................................................... 64


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i

About MELCA

MELCA means ford both in Amharic and Oromo Language - two of the widely

spoken languages of Ethiopia. It is a crossing point on a river. We use the

name symbolically to indicate our work to connect young and elders, cultureand environment, traditional and Western, etc. A river also signifies a linkage

with a source. We believe our culture is the source of our identity and wisdom.

If it is destroyed or degraded, we will loose a vast amount of knowledge and

our identity. A river flows forward, and we flow forward into the future taking

with us what is positive and works for us and the earth.

The name MELCA also translates in English to Movement for Ecological

Learning and Community Action. Ecological learning implies learning

experientially, in a participatory way, holistically, empowering the learner, italso espouses democracy as a principle and outcome of learning. Learning in

our case should equip us to facilitate action by communities.

MELCA Mahiber was born out of the African Biodiversity Network in 2004.

The members are pioneering a way of enhancing traditional ecological

knowledge and protecting fragile forest and watershed ecosystems through

community participation and empowerment.

Vision

To see empowered communities use and protect their biodiversity and

Traditional Ecological Knowledge for sustainable life.

Mission

To work for the conservation of biodiversity and for the revival and

enhancement of Traditional Ecological Knowledge and to protect the rights of

communities in Ethiopia through research, advocacy, endogenous developmentand intergenerational learning.

Objectives

To promote research on the relationships between cultural /traditional/ people

with their environment; to promote the diverse traditional ways of transferring

knowledge and practices from generation to generation; to campaign, advocate

and lobby for policy and legislation that effectively protects the rights of local

communities as well as the integrity of cultural and local governance systems;

and to promote endogenous development.

For detail information about MELCA please visit our website:www.Melca-ethiopia.org


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Overview of EIA in Ethiopia

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1. Introduction

Environmental impact assessment (EIA for short) is a recent phenomenon in Ethiopia. It became a legally required procedure

toward the end of year 2002, though emerged de facto before 2002

when a few land developers, including state-owned agencies,

approached the Environmental Protection Authority (EPA) to have

their environmental impact studies reviewed.

Since the Environmental Impact Assessment Proclamation 299

of 2002 was adopted by the House of Peoples Representatives,

some efforts have been made to implement the law by the EPA and

the relevant regional environmental organs, which were themselves

established by Proclamation 295 of 2002. In spite of these

efforts, EIA in Ethiopia has until now remained weak.

Though five years have elapsed since the adoption of the EIA law

in Ethiopia, the practice is still in its infantile stage, owing to anumber of interacting factors that have slowed progress. As EIA is

a complex process involving a large number of actors, there are

many variables that can affect its proper implementation.

This short study tries to identify the problems preventing the full

realization of the EIA Proclamation in Ethiopia and to recommend

some solutions. The study is based on key informant interviews

and an extensive review of academic and grey literature and

official documents, especially those available at the Federal EPAs

office.

2. Background

Economic development can have major impacts on the

environment by degrading soils, polluting bodies of water, altering

landscapes and threatening biodiversity, in some cases driving

species into extinction. In turn, environmental impacts can impose


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significant economic and social costs on society, especially with

regard to human health. EIA, however, can predict developments

negative effects and reveal strategies to avoid and mitigate them,and EIA can also point to possibilities to enhance the positive

effects of development activities.

EIA arose in response to the pollution and the unnecessary

degradation of natural resources caused by rapid and unsustainable

industrialization, agricultural development, and technological

progress. EIA recognizes that natural resources are finite and

incapable of absorbing the unchecked demands of modern society.

EIA assesses the impacts of proposed initiatives before work on the

initiatives begins. EIA is a formal study process and is used to

predict the environmental consequences of a proposed major

development project. In addition to assisting the formulation of

proper development policy, EIA also provides a forum for public

involvement in the decision-making process. (UNEP, 1988)

EIA is in essence the methodology for identifying and evaluating

in advance any effect be it positive or negative that results from

the implementation of a proposed project or public instrument.

(EIA Proclamation, 2002) The Ethiopian law has defined EIA to

include both project-level as well as strategic assessments. Just as

EIA investigates the possible environmental impacts of a project,

strategic level assessment looks at the possible environmental

repercussions of government programs, strategies and laws.

Assessments such as these that look at more than one project are

often termed strategic environmental assessment (SEA). In this

study, however, the writers consistently use the term environmental

impact assessment (EIA) to include both project level assessment

and strategic assessment, as the EIA Proclamation refers to both

kinds of assessments.


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SEA has been described as the formalized, systematic and

comprehensive process of evaluating the environmental impacts of

a policy, plan or program and its alternatives, including thepreparation of a written report on the findings of that evaluation,

and using the findings in publicly accountable decision-making,

(UNEP, 2006)

The main reasons for conducting EIA are:

To provide effective means of harmonizing and integratingenvironmental, economic, cultural and social considerationsinto a decision-making process in a manner that promotes

sustainable development prior to approval of a project or a

public instrument; (UNEP, 1988)

To bring about administrative transparency and accountability,as well as to involve the public and, in particular, communities

in the planning of and decision-making on development which

may affect them and their environment; (UNEP, 1988)

To ensure the respect of the constitutionally guaranteed rightof the people to live in a clean and healthy environment;

To ensure that potential problems are foreseen and addressedat an early stage in the projects planning and design. (UNEP,

1988)

From these points, one can infer that the aim of EIA is to prevent,

reduce or offset the significant adverse environmental effects of

development proposals, and to enhance the positive ones.

Every organism has the power to modify its environment, but none

has so great a power as the human being. This power was

heightened by the advent of the Industrial Revolution. Assisted by

scientific discoveries and technological advancements, we humans

caused great injury to the environment during the second half of


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the 19th

century and first half of the 20th

. With natural capital still

in abundance, scant attention was paid to the environment; instead,

attention was almost exclusively focused on economic profitability.During this period, whether or not to proceed with a project was

decided solely based on economic and technical feasibility,

regardless of the costs to society and the environment costs

otherwise referred to as negative externalities.

As time passed, people began to realize that human activities had

caused negative impacts on the environment. Laws and policies

aimed at protecting the environment began to emerge in different

countries. Initially, these laws sought to curtail the exploitation of

natural resources; then they developed into natural resource

conservation, protection and management laws. (Sands, 2003)

The natural resource conservation, protection and management

laws took different forms. One of these was the EIA law.

The very first EIA law was adopted in the late 1960s by a US State,

Michigan. (uneca.org, 2007) From that point on, many national and

international legal instruments included EIA as a major

environmental management tool, including the 1969 US National

Environmental Policy Act (NEPA). NEPA requires, inter alia, the

publication of an environmental impact statement (EIS) describing

in detail the environmental impacts likely to emanate from an

action (Wood, 2003).

Though EIA has primarily been concerned with predicting what

impacts both positive and negative may result from a project,

plan, program or strategy, it is also important to note that EIA can

also help to ensure the viability of the activity. For instance, if a

development project neglects its EIA, it may later face unforeseen

costs related to resource depletion, public opposition or otherequally expensive eventualities. (uneca.org, 2007)


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The undeniable benefits of EIA have prompted every industrialized

country in the world to make the practice mandatory in some form.

(Sands, 2003) Less developed countries are now playing catch-up.

In Ethiopia, there is now an urgent need for the development of

effective EIA. As casual observation suggests and studies confirm,

the environment is not featured highly on the development agenda;

the major preoccupation in project evaluation has been with short-

term technical feasibility and economic benefits. Many

development practices have not anticipated, eliminated or

mitigated potential environmental problems early in the planning

process. This has resulted in a seriously degraded natural

environment. For instance, according to a survey of 118 industrial

establishments in Addis Ababa, waste containing hazardous

pollutants has been discharged into all-purpose streams, water

bodies and the air. (Desta, 1989) A survey conducted by the

Environmental Protection Authority (EPA) also revealed that most

factories located in Addis Ababa do not have any way of treatingwaste. Evident environmental illnesses in urban centers, especially

in Addis Ababa, are the manifestations of the growing challenges.

(EPA, 2005) Another study conducted by the EPA revealed that

privately-owned Ethio Coffee and Tea Development and

Marketing PLC established the Gemadro Coffee Plantation Project*

without going through any EIA process, even using land that was

not allocated to it. (EPA, 2002)

Such actions can have devastating impacts unless they are subject

to the EIA process. EIA must not be seen as merely an additional

bureaucratic burden when a number of studies and policy

* Gemadro is located in Sheka Zone of the Southern Nations, Nationalities and PeoplesRegional State. Sheka Zone is one of the areas where remnants of virgin forests exist in

the country.


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documents attest that the environmental condition of the country is

alarming.**

EIA, however, is no panacea. It alone will not save the

countrys environment from the potentially harmful effects ofcurrent development. This does not mean that the only option is no

development option, but our development activities should at a

minimum go through the EIA process to mitigate the adverse

impacts and to augment the positive effects.

3. International Instruments and the EIA

Since environmental assessments were first promoted in the USunder the 1969 National Environmental Protection Act (NEPA),

they have been embraced by a large number of national legal

systems. Numerous international conventions, the policies of

multilateral development banks, and various non-binding

instruments adopted at the regional and global level all now call

for the use of EIAs. (Sands, 2003)

In recent years international cases arose regarding EIA. Notable

examples include:

New Zealands application to the ICJ concerning Francesresumption of underground nuclear testing (1995);

The conflict over the Gabcikovo-Nagymaros Project (1997) **1;and

The dispute between Ireland and the UK over the Mixed Oxideplant (2000).These cases indicate a heightened recognition that international law

requires the preparation of an EIA before a state engages in, or

** For instance, see the Environmental Policy of Ethiopia, 1997; Forest Proclamation

542/2007.**1 The dispute between Hungary and Slovakia concerning the Construction of two

barrages (dams) on the River Danube. (1997) ICJ Reports 7.


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permits, any activity which may have serious adverse impacts on

the environment.

The principles of the 1972 Stockholm Declaration did not

expressly identify EIA as an instrument of national or international

policy. However, the rationale underlying EIA can be identified in

the Principle 14, which states: rational planning constitutes an

essential tool for reconciling development and environment needs.

In the same spirit, Principle 15 reads:planning must be applied to

human settlements and urbanization with a view to avoiding

adverse effects on the environment and opting maximum social,

economic and environmental benefits for all.

As indicated in Paragraph 11(b) and (c), the 1982 examination and

assessment of activities likely to pose a significant risk to, or which

may disturb, nature requires that activities should not cease or find

ways to minimize adverse effects on the basis of the results of the

assessment or examination.

Agenda 21 calls on all countries to assess the environmental

suitability of infrastructure for human settlements, to ensure that

relevant decisions are preceded by EIAs and to take into account

the costs of any ecological consequences. It also calls on countries

to integrate environmental considerations in decision-making at all

levels and in all ministries and to ensure that transparency and

accountability prevail when economic or other policies have

environmental repercussions.

Agenda 21 in Paragraphs 8.5(b) and 10.8(b) also endorses

comprehensive analytical procedures for prior and simultaneous

assessment of the impacts of decisions, including their

environmental impacts and the assessment of costs, benefits and

risks, and the systematic application of techniques and proceduresfor assessing environmental impacts. EIA is also encouraged in


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specific Agenda 21 programs, including deforestation,

conservation of biodiversity and management of biotechnology.

Agenda 21 supports the need for individuals, groups andorganizations to participate in the EIA process.

The 1992 Convention on Biological Diversity (CBD) requires

parties to identify categories of activities which have or are likely

to have significant adverse impacts on the conservation and

sustainable use of biological diversity, to monitor their effects

through sampling and other techniques and to require EIA of

proposed projects that are likely to have significant adverse effects

on biological diversity. These requirements are supplemented by

decisions of the Conference of Parties. One of the decisions made

by the Conference of Parties (Decision IV/10) calls on members to

submit to the secretariat impact assessments, reports on the

effectiveness of EIA, reports relating to national legislation on

EIAs, and incentive schemes to encourage participation in EIA

programs.

Article 14 of the CBD also requires parties to promote notification,

exchange of information and consultation on activities under their

jurisdiction which are likely to significantly and adversely affect

the biological diversity of other states or areas beyond the limits of

national jurisdiction, and to provide for immediate notification in

any case of imminent or grave danger or damage.

The Akw: Kon Voluntary Guidelines provide guidance to parties

and governments on the incorporation of cultural, environmental

and social considerations of indigenous and local communities into

new or existing impact assessment procedures. They should be

applied in conjunction with the guidelines for incorporating

biodiversity-related issues into environmental impact assessment

legislation and/or process in strategic environmental assessment


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endorsed by the Conference of the Parties in decision VI / 7A and

contained in the annex to that decision.

The Akw: Kon Voluntary Guidelines generally provide for a

comprehensive EIA process that duly considers the sacred sites,

traditional ecological knowledge, cultural heritage, etc. of

indigenous and local communities before the implementation of

development project.

The 2000 Protocol on Biosafety to the Convention requires risk

assessments to be carried out in respect to important decisionsrelating to living modified organisms, in order to identify and

evaluate the possible adverse effects of such organisms on the

conservation and sustainable use of biological diversity, taking also

into account risks to human health.

All these instruments attest that EIA has been adopted both at

national and international levels as a substantive and procedural

legal tool for predicting the possible positive and negative

environmental impacts and formulating mitigation strategies.

4. Country Experiences

Reflecting on experiences from other countries provides insight

into how far Ethiopia has progressed with EIA, and how far the

country still needs to go. However, it must be noted that this is not

a comparative study of EIA systems of different countries.

Countries at different stages of economic and social development

have been selected for this short review.

4.1.African Countries

African countries are at various stages, as far as the development in

the EIA is concerned. For our analysis we consider three

countries; Ghana, Tunisia and South Africa. Well functioning

institutions and appropriate regulatory frameworks and procedures


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are important prerequisites to the effective application of EIA. All

of the three countries have established administrative bodies for

EIA. (UNECA, 2005)

Countries can be categorized in terms of their progress on EIA into

various levels ranging from the most advanced to the least

developed. None of the three countries reviewed here are at the

most advanced level, nor is any other country in Africa. (UNECA,

2005) The Advanced category is characterized by robust and

functional EIA systems that are generally mainstreamed while

those countries with the least developed EIA system have even no

EIA laws in place.

The three countries selected here have a system which is functional

and relatively developed; institutional arrangements, administrative

directives, a framework law and subsidiary regulations are in place,

and EIA has been practiced for 10 years or more. (UNECA, 2005)

4.1.1. Trends in EIA use

South Africa has a history of EIA application dating back to the

1970s, before the EIA law was in place. Several hundred voluntary

EIAs were conducted before 1989, when the EIA law was adopted.

In the last decade, the number of applicants has shown a

magnificent growth in South Africa. (UNECA, 2005)

In Ghana, the number of environmental assessment applications

increased from 294 in 1996 to 755 in 2003. This represents an

average of over 500 applications per year. Similarly, the number of

Environmental Impact Statements (EIS) received has shown a

steady increase since 2000, and now over 40 EISs are handled

annually on average. A similar trend was observed in Tunisia,

where the number of EIA applications received increased from 230

in 1991 and has stabilized between 1000 and 1200 per year since

1996. (UNECA, 2005)


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4.1.2. The focal organs for the EIA process

Inter-agency or cross-sectoral multidisciplinary committees assist

most EIA administrative agencies in the execution of their duties.

In addition, most government institutions have institutionalized or

are in the process of institutionalizing EIA by making its use in

their sectoral activities a requirement, either by policy or by law.

(UNECA, 2005)

As far back as 1985, the Ghana Investment Code required the

Ghana Investment Center (now Ghana Investment PromotionCenter) to consider environmental concerns in its activities. Other

examples of legislation with EIA requirements include the Energy

Commissions Act of 1997 and the Water Resources Commission

Act of 1999. The main administrative body to handle EIA issues in

Ghana is the Ghana Environmental Protection Agency, which was

established in 1994. (UNECA, 2005)

Also in Tunisia, the requirement to conduct EIA and obtain

approval from a competent authority is stipulated by sectoral

legislation. These apply to the exploitation of quarries; land use

and urban planning; waste/management and hydrocarbons.

(UNECA, 2005)

Regarding decentralization of EIA administration and regulation in

Tunisia, it is mainly concentrated at the central level. TheEnvironmental Assessment and Audit (EAA) Department of

Ghanas EPA works through ten EPA regional offices and two

district (zonal) offices. However, the capacity of district assemblies

to formulate and implement environmental management plans

remains limited. (UNECA, 2005)

In Tunisia, it is the National Agency for the Protection of the

Environment that is responsible for the review of the EIS. In

Ghana, in addition to the national review committee, other


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committees are established to review small and medium-scale

projects. The reason for setting up these committees is to reduce

the load on the national review committee and to facilitate quickdecision-making. (UNECA, 2005) The different review systems

have their own advantages and disadvantages. For instance, when a

single institution is involved in the review system, the review

process might be weakened due to lack of input from other

stakeholders. Conversely, when extremely large numbers of

stakeholders are involved, decision-making can be a lengthy

process.

In South Africa, provincial governments have been empowered by

EIA policies. By law, provinces have control over the approval of

EIAs for development activities, and have in turn partially

delegated these responsibilities to local authorities. Still, no

additional funding has been provided to help the provinces with

this added responsibility. Hence provincial authorities are

inadequately staffed to handle the volume of EIAs submitted forreview. (UNECA, 2005)

Clearly, the EIA process has been more decentralized in South

Africa than in Tunisia and Ghana. This is probably due to the fact

that South Africa is federalized, while both Ghana and Tunisia are

unitary countries.

4.1.3. Capacity to conduct EIA

Regarding issues of EIA capacity, countries have varied

experiences. In addition to the establishment of viable institutional

and regulatory frameworks, it is important that all stakeholders

involved in the EIA process have the necessary capacity and

expertise to effectively administer and apply the tools.

In Ghana and Tunisia, some tertiary institutions provide training on

EIA, which is run as part of various environment-related courses.


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In both countries, in addition to the trainings offered by tertiary

institutions, professional associations and NGOs provide training

on workshop basis. South African tertiary institutions and civilsocieties in particular have begun to play a leading role in

promoting EIA across the continent. (UNECA, 2005)

Unless intuitions which are designated to participate in EIAs are

staffed by capable personnel, the EIA system will be weak and

unable to accomplish the desired goals.

With respect to the professional quality and skills of thoseconsultants involved in the Environmental Impact Study Report

(EISR), South Africa has put in place regulations for their

certification and registration. (UNECA, 2005) This practice has

contributed to a high quality of reports. South Africa also

distinguishes itself by recognizing the Development Bank of South

Africa as an interested and affected party in the process of

conducting impact assessments on the projects it funds. Thisplaces pressure on the Bank to ensure that environmental risks and

liabilities are addressed in an acceptable manner. Additionally, the

Bank always reserves the right to demand an impact assessment on

a given project, even if one is not required by law. (UNECA, 2005)


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Source: UNECA, 2005

South Africa Ghana Tunis

Enabling legislation Yes, 1989 Yes, 1994 Yes, 1988

Specific legislation/ regulations Yes, 1997 Yes, 1999 Yes, 1991

General and specific guidelines Yes, 1997 Yes, 1995 and

1999

Yes

Formal provisions for public

participation

Implied under

review clause

Yes, 1999 No

Main administrative body/bodies Department of

Environmental

Affairs and

Tourism

Ghana

Environmental

Protection

Agency, 1994

National

Environm

Protection

Agency, 1


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4.2.Serbia

In Serbia, EIA and its environmental assessment system havedeveloped together through the 1990s. The EIA/SEA Act of Serbia

was designed to allow for synchronization between the EIA and

SEA procedures. (Sevic, 2005)

In Serbia, EIA is applicable for projects that may result in major

environmental pollution or that constitute a risk to human health,

etc. Without passing through the EIA process, no project may

begin. (Sevic, 2005) An interesting aspect of the Serbian EIA law

is that it stipulates that stakeholders shall be informed by public

announcement of decision-making procedures, shall take part in the

process by submitting opinion, comments and suggestions to the

competent authority and shall be timely informed about the

decisions. (Sevic, 2005)

Before 2002, the administration of the EIA process occurred onlyat the republic level. All EIA documentation was being sent to the

federal-level Ministry of Environment for review and approval.

Since 2002, however, review and approvals are being carried out

by the Republican Ministry of Environment, the Provincial

Secretariat for Environmental Protection and the City or Municipal

administration, depending on the type and location of the project.

(Sevic, 2005)

There are a number of professional (consulting) organizations

involved in the process of writing EIAs and SEAs. These include

university departments and scientific institutions, as well as

environmental engineering consultancies. (Sevic, 2005)

As stipulated under Article 5 of the Serbian EIA Act, a developer

may not commence a project without having previously completed


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the impact assessment procedure and obtained the approval of the

EIA study from the competent authority. (Sevic, 2005)

For public participation, the Serbian law requires the notification of

republic participation through the appropriate media, at the expense

of the project. (Sevic, 2005)

The Serbian EIA Act (Article 19) specifies that EIA can be

performed by legal persons and entrepreneurs who are licensed for

the execution of planning activities, engineering activities, and

studies and analyses. (Sevic, 2005)

The EIA Report is appraised by members of a special review team,

the Technical Commission for Review, which must have at least

one member from the competent authority and at least one

independent expert. (Sevic, 2005) The EIA review process is

conducted at various levels, though by requirement is completed

within 40 days. (Sevic, 2005)

5. The EIA System in Ethiopia

Prior to becoming a legal requirement in 2002, the application of

EIA in Ethiopia was introduced by a few sectors. The practice of

contemplating environmental and health impacts was introduced as

early as 1980 into water resources development projects assisted by

UNDP/WHO, though the main focus was limited to water-related

and water-based health problems (Solomon, 2006). This practice

then evolved into a formal requirement in international donor

assisted and financed projects in various sectors.

The former Ethiopian Valleys Development Authority was the first

national institution to incorporate EIA into its activities. The

authority developed its own specific guideline for the application

of EIA in pre-feasibility and feasibility studies of potentialmedium-scale irrigation projects (Solomon, 2006). Even though


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these efforts were limited to the irrigation sector and narrow in

scope, and despite that they were donor-driven, they have

nonetheless contributed to the emergence of the system of EIA thatexists in the country at present.

5.1.Policy Framework for EIA

Until 1997, Ethiopia did not have a comprehensive environment

policy as such. The Environmental Policy of Ethiopia was issued in

1997 to provide overall guidance in the conservation and

sustainable utilization of the countrys environmental resources ingeneral. The overall objective of the environmental policy is to

promote the sustainable social and economic development of the

country through, inter alia, sustainable management and utilization

of the natural resources of the country. Among the specific

objectives the environmental policy seeks to achieve are ensuring

the conservation, development and sustainable use of essential

ecological processes and life support systems, biological diversityand renewable natural resources; and the empowerment and

participation of the people in environmental management.

The environmental policy lays the foundation for environmental

impact assessment in the country. In section 4.9, the environment

policy stipulates the countrys policies regarding EIA. It provides

for the enactment of a law which requires that an appropriate EIA

and environmental audits be undertaken on private and state

development projects; and the development of detailed technical

guidelines that direct the undertaking of EIA and environmental

audits in the various sectors. It also provides for the establishment

of an institutional arrangement responsible for undertaking,

coordinating and approving EIA and the subsequent environmental

audits.


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Furthermore, the environmental policy determines the scope and

key elements of the EIA process. It states that EIA should consider

not only physical and biological impacts, but also address social,socio-economic, political and cultural conditions; and that

environmental audits should be undertaken at specified intervals

during project implementation to ensure compliance with terms of

EIA authorization. It also state that environmental impact

statements should always include mitigation plans for

environmental management problems and contingency plans in

case of accidents; and that the EIA procedure should provide for anindependent review and public comment on environmental impact

statements before they are considered by decision-makers. While

the environment policy provided the policy basis of EIA process in

the country, it has one major limitation: it does not subject public

instruments to the EIA requirement.

5.2.Legal Framework for EIA

5.2.1. The FDRE Constitution

Being a supreme law of a land, a constitution provides the basic

framework on which detailed laws shall be developed for various

sectors. The 1995 Constitution of the Federal Democratic Republic

of Ethiopia contains provisions that support the enactment of EIA

legislation. In this regard, it stipulates that the design and

implementation of development programs and projects in the

country should not damage or destroy the environment; and

recognizes the right of the people to be consulted and express their

views on the planning and implementation of environmental

policies and projects that affect them (Art. 92). In addition, the

constitution recognizes the right of citizens to live in a clean

environment, and, where they are displaced or their livelihood has

been adversely affected by the development projects undertaken by

the government, the rights to get commensurate monetary or


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alternative compensation, including relocation with adequate state

assistance (Art. 44). These provisions provide a perfect

constitutional basis for the development and implementation of aneffective EIA process.

5.2.2. Environmental impact assessment law

Following the provisions of the environment policy, the Ethiopian

government introduced the Environmental Impact Assessment

Proclamation (Proclamation 299 of 2002). The proclamation

requires an EIA process for any planned development project or public policy which is likely to have a negative impact on the

environment. With regard to development projects, the

proclamation stipulates that no person shall commence

implementation of a proposed project identified by directive as

requiring EIA without first passing through environmental impact

assessment process and obtaining authorization from the competent

environmental agency (Art. 3(1)). In line with this, project proponents must undertake EIA and submit the report to the

concerned environmental body, and, when implementing the

project, fulfill the terms and conditions of the EIA authorization

given to them (Art. 7). Moreover, the proclamation allows for the

imposition of a fine between fifty-thousand and one hundred

thousand birr on any project owner who commences

implementation of a project without obtaining authorization fromenvironmental agencies or who makes false presentation in the

environmental impact assessment study report (Art. 18).

Furthermore, the proclamation obliges licensing institutions, prior

to issuing investment permits or operation license to projects, to

ensure that the relevant environmental bodies have authorized the

implementation of the projects (Art. 3). In addition, it requires such

licensing institutions to suspend or cancel the permit or license

they have issued for projects where the concerned environmental


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body suspends or cancels the authorization given for

implementation of the project (Art. 12). These provisions are

important to ensure that project owners comply with the EIArequirement.

The proclamation also provides for public participation in the

environmental impact assessment process. It requires

environmental bodies to ensure that the comments made by the

public (in particular the comments by the communities likely to be

affected by the implementation of a project) are incorporated into

the EIA study report as well as into its evaluation (Art. 15). To this

end, it requires environmental bodies to make any EIA study report

accessible to the public and to solicit comments thereon.

The proclamation also requires public instruments, which are

identified by directive as requiring EIA, to pass through

environmental impact assessment process prior to their approval. In

line with this, it obliges government organs to ensure that theirpolicies have passed through EIA process prior to their submission

for approval (Art. 13).

Having provided the basic framework of EIA, the proclamation

envisages the issuance of specific directives and guidelines that

further specify implementation of the EIA process. Particularly, it

requires the Environmental Protection Authority (EPA) to develop

a directive identifying categories of projects likely to have negative

impact and thus require EIA (Art. 5). It also requires EPA to issue

of guidelines that determine the elements necessary to prepare and

evaluate EIA study report (Art. 8). The Environmental Protection

Authority has already developed such draft directives and

guidelines but they have not yet been formally adopted and put into

force.


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5.3.Sectoral Laws Relevant to EIA

It has been recognized that activities in the various economic

sectors have the greatest impact on natural resources in particular

and the environment in general. Accordingly, integrating EIA into

the laws, regulations and decision-making process in such sectors

is crucial. The following section describes the sector-specific laws

and regulations in the country into which EIA should be integrated.

5.3.1. Business law

Business is one of the economic activities that has an impact on the

environment. Thus EIA should be integrated into the laws and

regulations that regulate the licensing and operation of businesses.

The licensing and operation of business activities in the country at

present are regulated by the Trade Registration and Business

Licensing Proclamation (Proclamation 67/1997). The

proclamation subjects the undertaking of commercial activities in

the country to the requirement of business license. Article 21 of the

proclamation stipulates that no person may carry on commercial

activity without obtaining a business license.

In addition, the proclamation requires that any commercial activity

should be undertaken in compliance with environmental protection

regulations. It regards the observance of environmental protection

laws both as a pre-condition for issuance, and the ground forsuspension and revocation of, a business license. Article 22(2) of

the proclamation requires presentation of a certificate from

environmental agencies to the effect that the intended business

activity does not violate environmental protection laws as pre-

condition for the granting of business license. The proclamation

also states that, if a licensed business is ascertained to have

violated environmental protection laws, its license may besuspended until the violation is rectified. If the issue is not rectified


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within the specified time or if the business repeatedly commits the

breach, the license may be revoked.

Given that environmental impact assessment is one component of

environmental laws, it can be inferred that the Trade Registration

and Business Licensing Proclamation (Proclamation 67/1997)

has integrated EIA into the framework regulating the licensing and

the operation of businesses. In other words, the proclamation

provides a legal basis to require a business license applicant to seek

an EIA authorization from environmental agencies before the trade

license is issued, and to suspend or revoke the trade license should

the business owner fail to comply with the conditionalities

specified in the EIA authorization.

5.3.2. Investment law

Investment is an expenditure of capital by private individuals to

establish a new business or to expand or upgrade a business that

already exists. Legislation often seeks to provide incentives to

promote private capital investment, especially by promoting

participation of foreigners in the national economy. In Ethiopia,

where investment has boomed in recent years, causing deleterious

effects on the environment and natural resource base of the

country, it is crucial that EIA be integrated with the current legal

framework for investment.

The Investment Proclamation 280 of 2002 (as amended by

Proclamation 375/2003) and Investment Regulation 84 of

2003 are the laws that regulate investment activities in the country

at present. According to the Investment Proclamation, having an

investment permit is a requirement for foreign nationals to

undertake any commercial activities in Ethiopia; they cannot carry

out commercial activity in the country without first having aninvestment permit. A foreign national can obtain an investment


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license provided that the sector is open to foreign investment (not

reserved for nationals) and that the minimum investment capital

requirement is meet. On the other hand, foreign nationals who areEthiopian by birth and wish to be treated as domestic investors are

not required to obtain an investment permit in order to undertake

commercial activities in the country, though they must also forego

investment incentives granted to foreign investors. In other words,

if foreign national who are Ethiopian by have the option to obtain a

business license without the need to obtain investment permit.

An investment permit is valid for a period of one year and may be

extended upon application by the investor to the proper investment

authorities. Investors must acquire operation (trade) license prior to

commencing production or provision of service. This means that an

investment permit serves only for the period of

construction/establishment of the business project. The key

purpose of investment permit is thus to facilitate acquisition of land

and services such as power, water, telecommunication and otherinfrastructure services, apart from authorizing foreign nationals to

undertake business activities in the country and entitling domestic

investors to investment incentives.

The issuance of an investment license provides an opportunity for

EIA. According to the Investment Proclamation (Proclamation

375/2003), investment permits can be obtained upon submission ofa completed application form to investment authorities. The

application form requires the applicant to provide information

relating to the status of the applicant, the kind of the intended

investment activity, the investment capital, the investment area

(region only), the kind and size of intended production or service,

and the number of jobs the investment shall create. Apart from

these, the application form does not require presentation of an EIA

or any information related to the environmental impact of the


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intended investment project. Investment authorities issue an

investment permit within a matter of hours upon submission of a

properly completed application form, and notify by letter theconcerned sectoral institutions, of which the competent

environmental agency is one, requesting the necessary support and

follow-up of the implementation of the investment project

according to the relevant laws of the country.

The monitoring of investment projects provides another

opportunity for the application of EIA. The Investment

Proclamation specifies the grounds for the suspension and

revocation of investment licenses. An investment license may be

suspended or revoked if the investor obtained the investment

permit fraudulently or presented false information; transferred the

investment permit to a third person without permit from the

investment authority; failed to renew the investment license in due

time; misused or illegally transferred incentives to third parties; or

engaged in commercial activity without obtaining a businesslicense. Clearly, the Investment Proclamation does not include the

commencing of an investment project without first obtaining EIA

authorization as grounds for suspension or revocation of a license.

The other aspect of the Investment Proclamation with potential

relevance to EIA relates to the issuance of an operators license to

provide a product or service. Proclamation

375/2003 givesauthorities the power to issue trade/operation license to investors,

upon commencement of production and service, representing

business licensing institutions and in accordance with the relevant

laws of the country. Nevertheless, Article 24(5) of the

proclamation stipulates that investment authorities may only issue

a business license upon the investors signed pledge to respect the

relevant laws and directives of the country, notwithstanding the

provision of Article 22(2) of the Commercial Registration and


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Business licensing Proclamation 67/1997. Article 24(5) of the

Investment Proclamation 375/2003 in effect repeals article 22(2)

of the Commercial Registration and Business licensingProclamation 67/1997, which makes presentation of

authorization from environmental agencies a requirement for

issuance of business license. The Investment Proclamation

375/2003 creates a loophole for investment activities to begin

before going through an EIA, thereby rendering the EIA

meaningless. In other words, the current process for issuing

investment licenses does not force investors to comply with theEIA requirement. This allows reckless investors, or investors who

are ignorant of the EIA requirement, to inflict damage on the

countrys environment and natural resources.

5.3.3. Land law

The legal framework governing how land is allocated for

investment presents other possibilities for the incorporation of EIA.Regarding the utilization of land for investment, Ethiopias 1995

Constitution provides for the right of investors to obtain land for

investment purpose on lease in accordance with conditions to be

specified by subsidiary laws (Art. 40). In line with this, the Rural

Land Administration and Use Proclamation (Proclamation

456/2005) recognizes the right of investors to obtain and use rural

land, provided that priority is given to peasants and pastoralists(Art. 5(4)(a)). Once land has been allocated, the proclamation

obliges landholders to sustainably use and manage the property.

Land users thus face the threat of losing their right to the land in

the case that the holding is damaged due to misuse and

mismanagement, in accordance with details to be specified by

regional land laws.

Having provided the guiding rules, the Rural Land Administration

and Use Proclamation (Proclamation 456/2005) leaves the


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particulars to be legislated by regional states, allowing for the spirit

of the law to be interpreted in harmony with the situation on the

ground in their respective regions. Accordingly, regions haveissued their regional rural land laws in recognition of the rights of

investors to obtain and use rural land. The Rural Land

Administration and Utilization Proclamation of the Southern

Regional State (Proclamation 110/2007), for instance,

recognizes the rights of private investors to obtain rural land for

investment, with priority given to peasants and pastoralists (Art.

5(15). and Art. 10(5) of the proclamation further stipulate that thedevelopment plan submitted by investors seeking land must not

lead to the degradation of the land or surrounding environment). In

addition, it obliges investors to sustainably manage their holding,

including any and all natural resources therein (Article 10(6)).

While the rural land law of the Southern Nations Regional State

stipulates that the development plan that investors present to obtain

rural land must not lead to land or environmental degradation, it

fails to subject the allocation of rural land to the requirement of

EIA.

5.3.4. Fishery law

The government has ratified fishery legislation with a view to

ensure the conservation, development and utilization of fishery

resources in the country (Proclamation

315 of 2003). Fisherylaws seek to ensure the sustainable use of fishery resources in the

country. To this end, the proclamation stipulates that federal or

regional organs should ensure that development programs and

projects will not have a negative impact on the fishery resources of

a basin (Art. 8). In addition, it states that any subsidiary fishery

laws and regulations to be developed under the proclamation

should incorporate EIA. Furthermore, it states that permits for the

establishment and operation of an aquaculture for commercial


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purposes shall not be issued unless there is sufficient land and

water resources and unless it has been ascertained by the

competent authorities that the intended aquaculture will not causenegative impact on the surrounding environment and natural

resources (Art. 6). While the proclamation contains important

provisions that support EIA relevant to the sustainable utilization

of fishery resources, it does not specifically require fishery

developers to submit an EIA report to environmental agencies.

5.3.5. Wildlife law

The management and utilization of wildlife resources in the

country was regulated, until recently, by the wildlife legislation

issued in 1980 (Proclamation 192 of 1980), which remained

unchanged in spite of the new trends in wildlife management. A

new Wildlife Proclamation was finally enacted with the view to

adapt the management of wildlife to existing realities

(Proclamation

541/2007).

Recognizing that the previous strategy to conserve wildlife was not

working, the new Wildlife Proclamation seeks to enable the active

participation of local communities living around wildlife

conservation areas and private investors in the conservation,

development and utilization of wildlife resources; and to enhance

the contribution of wildlife resources to poverty reduction by

maximizing their economic benefit. In relation to maximizing the

economic benefit from the wildlife resources of the country, the

proclamation encourages investment in wildlife-based tourism, to

be conducted in such a way that shall not endanger the ecological

integrity of protected areas (Art. 11). In addition, it requires that

any economic activity to be undertaken in wildlife conservation

areas shall be carried out in accordance with the proclamation, and

its corresponding regulations and directives (Art. 10). While the

proclamations assertion that wildlife based tourism should not


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endanger the ecological integrity of the protected areas is a positive

measure, the proclamation fails to subject the granting of permits

for development of wildlife tourism infrastructures such as hotels,camp or other facilities in protected areas to the EIA process.

Unless the regulations and directives envisaged to be issued under

the Wildlife Proclamation address this issue, there will be a

legislative gap in integrating EIA with wildlife-based tourism

development.

5.3.6. Water law

The conservation, utilization and development of water resources

in the country at present is regulated by the 2000 Water Resources

Proclamation (Proclamation 197/2000) and the 2005 water

resources regulation (Regulations 115 of 2005). The Water

Resources Proclamation aims to ensure that the water resources of

the country are duly conserved and protected from harmful effects

and utilized for the highest social and economic benefits of thecountry. Accordingly, the proclamation describes the measures that

must be taken for the conservation and protection of waterways

and the conditions under which water resources may be exploited.

The proclamation prohibits the release of any waste that endangers

the lives of humans, animals or plants into water bodies. In

addition, it prohibits the clearing of trees or vegetation and the

construction of residential houses along the banks of water bodiesso as to ensure their protection.

Related to the utilization of water resources, the proclamation

establishes a system of water resource utilization based on permits.

For example, permits are required for the construction of

waterworks and for the supply or transfer of water, even if the

water is received from another supplier. The water resources

regulation lays out the conditions for the issuance, suspension or

termination of a water use permit. In this regard, it stipulates that a


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water use permit will not be issued if the plans entail the creation

of pollution or harmful effects to the water resources and the

environment. In addition, it states that a water use permit may beterminated or suspended if the water resource in use is temporarily

or permanently depleted, or if the usage of the water resource has

caused negative impact on the environment. While the water law

seeks to ensure the sustainable use of water resources, it falls short

of making EIA a mandatory requirement for the issuance of water

use and development permits.

5.3.7. Mining law

The Mining Proclamation (Proclamation 52/1993) and the

Mining Operations Regulation (regulation 182/1994) regulate

the mining of mineral resources in the country. These mining laws

contain provisions aimed at ensuring that mining activities are

carried out in a way and manner that shall not cause significant

damage to the environment. In this respect, the mining lawsdetermine the rules on the utilization of water and timber resources

in a mining area. While the mining law allows a miner to use water

and timber found in the leased area for the mining operation, it

requires at the same time that the use of water should not result in

substantial reduction of the quantity of quality of the water needed

by other users. It also stipulates that one cannot construct dam or

divert watercourses without the prior approval of the appropriategovernment body. With the exception of the clause on pollution,

the mining law does not strictly prohibit uses of water by miners

that may cause other environmental problems, such as damage the

ecosystem, reduce biodiversity or degrade water resources. Holders

of a mining license may log and use timber as dictated by other

applicable laws and must submit a restoration plan.

Moreover, the mining law obliges a licensee to conduct the

operation in a manner that minimizes damage or pollution to the


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environment. It also requires a licensee to immediately notify the

licensing authority of anything likely to jeopardize the property or

the environment and to immediately take the necessary steps tomitigate the impacts.

5.3.8. Genetic resource law

Following the Convention on Biological Diversity, the government

of Ethiopia enacted legislation which provides for community

rights and access to genetic resources and traditional knowledge

(Proclamation 482/2006). The proclamation subjects access togenetic resources and community knowledge in the country to the

requirement of permit from the Institute of Biodiversity

Conservation, and stipulates the conditions under which access to

genetic resources may be denied.

Though the proclamation does not directly stipulate that an access

application should first go through an EIA process as such, it does

contains provisions meant to ensure that access to genetic resources

is carried out without causing harm to the environment. In this

regard, it states that access may be denied if the planned use may

cause , inter alia, an undesirable impact on the environment, an

ecosystem, human health or the cultural values of local communities

(Art. 13). It also obliges an access permit grantee to respect the laws

of the country, particularly those relating to sanitary control,

biosafety and environmental protection (Art. 17). Again, however,

the law fails to require applicants wishing access to genetic

resources to conduct a formal EIA process.

5.4.The Institutional Framework of EIA

The current system of government in Ethiopia is organized into a

federal structure, comprised of a federal government and nine

regional states. Government administration of EIA in Ethiopia is

thus shared between the federal government and regional states.


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This section provides an overview of the institutions responsible

for, and relevant to, the administration of EIA in the country.

5.4.1. Environmental protection organs

The Environmental Protection Organs Establishment Proclamation

(Proclamation 295/2002) established the institutions responsible

for regulation of EIA; these include the Environmental Protection

Authority, Regional Environmental Agencies and the Sectoral

Environmental Units.

a) Environmental protection authority

The Environmental Protection Authority (EPA) is the lead federal

environmental organ with the objective of formulating policies,

strategies, laws and standards to ensure social and economic

development activities in the country sustainably enhance human

welfare and the safety of the environment (Art. 6). The regulation

of EIA is one of the key responsibilities entrusted to the EPA. Inthis respect, EPA is responsible for establishing a system for

undertaking EIA on public and private projects as well as on social

and economic policies, strategies, laws and programs. Specifically,

it is responsible for developing a directive that identifies categories

of projects likely to have negative impact and thus require EIA,

and for issuing guidelines that direct the preparation and evaluation

of EIA study reports (Proclamation 299/2002, Art. 5 & 8). Inaddition, EPA is responsible for evaluating the EIA study reports

on projects subject to federal licensing, execution or suspension

and on projects likely to create inter-regional impacts. The EPA is

also responsible for auditing and regulating the implementation of

such projects. Moreover, EPA is responsible for giving technical

support pertaining to environmental management and protection to

regional states and sectoral institutions.


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b) Regional environmental agencies

The Environmental Protection Organs Establishment Proclamation

(Proclamation 295/2002) requires regional states to establish or

designate their own regional environmental agencies. The regional

environmental agencies are responsible for coordinating the

formulation, implementation, review and revision of regional

conservation strategies; and for environmental monitoring,

protection and regulation (Art. 15). Relating to EIA specifically,

the Environmental Impact Assessment Proclamation (Proclamation

299 of 2002) gives regional environmental agencies the

responsibility to evaluate the EIA study reports on projects that are

licensed, executed or supervised by regional states and that are not

likely to entail inter-regional impacts. Regional environmental

agencies are also responsible for auditing and regulating the

implementation of such projects.

The institutional standing of regional environmental agenciesvaries from region to region. In some regions, they are established

as separate institutions, while in others they are constituted within

other institutions. For instance, in the Oromiya Regional State, an

Environmental Protection Office is established as separate

institution, while in the Southern Nations Nationalities and Peoples

Regional State, the regional environmental organ is situated within

the Bureau of Agriculture and Rural development as anEnvironmental Impact Assessment and Pollution Control Team.

c) Sectoral environmental units

The other environmental organs created by the Environmental

Protection Organs Establishment Proclamation (Proclamation

295/2002) are the Sectoral Environmental Units, which are

mandated to be established at every competent agency with theresponsibility of coordinating and following up activities in


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harmony with environmental protection laws and requirements (art.

14). Such sectoral environmental units can play important role in

ensuring that EIA is carried on development projects and publicinstruments initiated by government institutions. However, sectoral

environmental units have not been established as yet in most of the

relevant federal institutions, except at the Ethiopian Roads

Authority, Ethiopian Electric Power Corporation and the Ministry

of Water Resources. (Kebede, 2006) At the regional level, not a

single sectoral environmental unit has been established as yet.

5.4.2. Sectoral institutions relevant to EIA

a) Licensing institutions

Ministry/Bureau of Trade and Industry

Business activities are regulated at the federal level by the federal

Ministry of Trade and Industry, and by the Bureaus of Trade,

Industry and Transport the Trade at regional levels (Proclamation 67/1997). These institutions have the power to issue business

licenses for most commercial activities and the obligation to see

that they are operated in accordance with the law. There are some

commercial activities, however, which because of their technical

nature are licensed by other institutions.

Investment institutions

The Ethiopian Investment Agency is the federal institution

responsible for promoting, coordinating and facilitating foreign

investment in the country. In particular, the Investment Agency is

vested with the power to approve and issue investment permits,

trade registrations and operating licenses to foreign investors; and

to facilitate acquisition of land by foreign investors (Proclamation

280/2002). According to Ato Solomon Kebede, an official at the

Environmental Protection Authority, the Investment Agency has


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issued investment licenses to about 23,000 investors within the last

five years.

Investment licenses for domestic investors are issued by regional

investment commissions. Regional investment commissions are

responsible for facilitating and promoting investment activities in

the regions. The Investment Commission of SNNPRS, for instance,

has the power to, inter alia, issue and renew investment licenses

and, where necessary, suspend and revoke them; initiate policy and

implementation proposals necessary to create conducive

investment conditions; take over administration of land designated

for investment and ensure that the land is indeed used for

investment; follow up projects and investment licenses and ensure

that project owners fulfill their obligations; and provide advice and

support to investors (Proclamation 106/2007).

Ministry/Agency of Mines and Energy

The Ministry of Mines and Energy is responsible for the

development and proper utilization of mineral resources in the

country (Proclamation 4/1995 article 15). In relation to this, the

ministry has the responsibility to, among other things, prepare laws

on the utilization of natural resources, issue licenses to private

investors engaged in large-scale mining activities and supervise

their operations.

Regional Agencies of Mines and Energy are responsible for

regulating the utilization of mineral resources at regional levels. In

this regard, they have the responsibility to, inter alia, study the

mineral resources in the regions and prepare directives and

manuals on the utilization of mineral resources in the region, issue

license for producers of construction minerals and for small-scale

mineral producers and supervise the operations the producers(Proclamation 106/2007).


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b) Natural resources management institutions

Ministry/Bureau of Agriculture and Rural Development

The Ministry of Agriculture and Rural Development (MoARD) has

both development and natural resource management

responsibilities (Proclamation 380/2004). Relating to natural

resources management, MoARD has the responsibility to prepare

policy on land use and draft legislation on forestry and wildlife.

The Agriculture and Rural Development Bureau (ARDB) is the

key natural resource management institution at regional level. It is

responsible for the management of land, forest, wildlife and

biodiversity resources (Proclamation No 110/2007). Relating to the

wider land use domain, ARDB is expected to, inter alia,

allocate/prepare rural land for agricultural investment; provide

assistance to investors engaged in the sectors; and issue and

implement directives that enable protect natural resources and the

environment from pollution. Even though EIA is under ARDB, the

new Executive Organs Establishment Proclamation of SNNPRS

(Proclamation No 106/2007) does not clearly mandate the ARDB

to evaluate and decide on EIA study reports, and to monitor the

implementation of its decisions, whereas the former Environmental

Protection, Land Administration and Utilization Proclamation

(Proclamation No 52/2003) of the SNNPRS was quite clear on

these issues. The new Executive Organs Establishment

Proclamation of SNNPRS (Proclamation No 106/2007) thus

appears intent on modifying or weakening the EIA framework

formerly in place.

Ministry/ Bureau of Water Resources

The Ministry of Water Resources (MoWR) is the lead federal

institution responsible for the conservation, utilization and


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development of water resources in the country (Proclamation No

4/95). Specifically, MoWR has the responsibility, inter alia, to

formulate legislation on the conservation and utilization of waterresources; develop plans on the proper utilization of the countrys

water resources for development, and, upon approval, supervise

their implementation; and determine water quality standards for

various uses. In addition, MoWR is responsible for determining the

conditions and methods for the optimum allocation and utilization

of water resources that occupy more than one regional state among

various uses and users; and to undertake studies on the utilizationof trans-national rivers.

The Water Resources Bureau (WRB) is a regional institution

responsible for the management and use of water resources

(Proclamation No 110/2007). Particularly, WRB has the

responsibility to, among other things, study the quantity and

distribution of water resource of the region and prepare water

utilization directives and manuals; ensure balanced and fair sharingand utilization of water resource in the basins; and issue license to,

and supervise, investors engaged in irrigation development.

c) Financial institutions

Financial institutions should also incorporate EIA into their

procedures. By incorporating EIA authorization into their loan

policies, financial institutions can help ensure that development

projects comply with the EIA requirement. There are a number of

private and state-owned banking institutions operating in the

country. Nevertheless, only the Development Bank of Ethiopia, the

major long-term development loan provider in the country, has

incorporated environmental impact into its loan policy. The

Development Bank of Ethiopia thus requires loan applicants to

present EIA authorization from environmental agencies as a

requirement for obtaining loan.


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6. Gaps and Challenges

Regarding the EIA process in Ethiopia, there are signs of a positive

beginning, according to Girma Mikru, Head of the EPAs

Economic and Social Affairs Department, (Interview, Girma)

There are some indications that EIA is being applied onthe ground. That is, some project owners, including

government agencies, have begun to bring their

Environmental Impact Study Reports (EISR) to the EPA

and regional organs;

Experiences are beginning to accumulate from currentengagements in EIA activities. Especially at the Federal

level, the number of applications made by project owners

or EIA proponents is increasing year to year

The government appears to have some commitment toenvironmental issues, as suggested by:

The enactment of new laws; The establishment of the Environmental Council

at Federal level;

The establishment of environmental units in somesectoral offices; and

Some training opportunities, etc.Ato Solomon Kebede, an official at the Environmental Protection

Authority, identified other promising developments. (Solomon,

2006)

There is growing concern over EIA among officials fromsectoral agencies, which has been witnessed in public

discussions with the sectoral agencies and policy makers;


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Sectoral agencies that have established environmentalmonitoring units have strengthened their EIA capacity.

Those that have not yet established monitoring units haveshown interest to do so. EPA also plans to assist sectoral

and regional agencies with the view to enhance their

capacity in all possible aspects.

The Development Bank of Ethiopia has made EIA arequirement for credit purposes; i.e., it loans money to

investors only after they present the approved review of

the EISR, making it a pioneer in greening its credit policy.

Other banks also have shown interest to follow the

footsteps of the Development Bank, but they claimed that

they need this to be a legal requirement. They also

suggested that their clients should have insurance

coverage for potential environmental liabilities.

The Ethiopian Floriculture Association has developed aCode of Conduct that requires EIA for the purpose of

accessing the EU market successfully.

Other encouraging items include:

A booklet published by the Ministry of Trade andIndustry, the Ethiopian Investment Agency and the

Ethiopian Horticulture Producer-Exporters Association,which requires EIA before starting a horticultural farm.

(Stoop, 2007)

The requirement of EIA set by the new Criminal Code(Article 521)

Irrespective of the progress in the area of EIA, there are a number

of gaps and challenges with respect to EIA process in Ethiopia.


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The following are considered to be the main gaps and challenges

observed in the Ethiopian EIA process.

6.1.Lack of Awareness

Very little is known about EIA in Ethiopia. One of the reasons for

such low level of knowledge about EIA is that the lawmaking

process has not been participatory. EIA law was enacted without

the sufficient participation of all stakeholders. Local communities

who can be directly affected by a development project have never

been consulted during the lawmaking process that finally resultedin Proclamation 299/2002. (Interview, Solomon)

Local administrations and other government officials are one of the

key actors in the process of the EIA. However, there is a complete

absence of information about EIA and its importance with these

persons, making the EIA process very difficult. Moreover, absence

of knowledge about EIA led many officials to consider it a process

that is designed to make development activates difficult. Lack of

sufficient understanding of EIA led to a number of misconceptions

among those who are key actors in the EIA process. (Interview,

Solomon)

There are people now who think, We are poor and we need very

rapid economic growth, thus we cannot afford environmental

luxuries; EIA is anti-investment and anti-development, time-taking,costly and a complicated process that delays the development

process, etc. (Solomon, 2006) Project owners and investors also

have inadequate awareness about the importance of EIA. They

generally perceive it as a bureaucratic hurdle with no visible

importance. They do not generally appreciate that it is not only

important for the continued supply of the main inputs to their

activities, but also as a guarantee for their continued activities. Theydo not usually understand that the absence of EIA could mean an


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unexpected depletion of resources, public resistance against their

projects or difficulty in accessing market opportunities. Because of

these perceptions, EIA is seen by many as a threat to investmentand other development activities, rather than as a tool for

sustainable development. (Interview, Solomon)

It is clear that our economic foundation is our natural resources and

that we are experiencing severe environmental degradation. At

present, the best way to design and implement our development

endeavors in the context of ecological and social realities is through

EIA. Investment can only be successful and profitable if it is

conscious of its environmental and social realities and addresses

them fairly and adequately. Finding a shortcut by avoiding EIA

may appear to be profitable, but from long-term perspective, it is

suicidal. Unless there is sufficient knowledge on the main objective

of EIA which is to attain economic development together with

social development and environmental protection it will be hard

to say that our development is a sustainable one. (Interview,Solomon)

6.2.Problems of Capacity

The problem of capacity is best seen from the perspective of

consultants and of the EPA itself. Consultants are very important

actors in the EIA process as they are the ones who are preparing

EISR on behalf of the applicant. As there is no code of conduct or

criteria governing how such a multidisciplinary task should be

handled, consultants risk being highly influenced by their clients.

(Interview, Abiy) Currently, it is believed that there are virtually no

consultants who are qualified to conduct EISR in an efficient

manner. According to this interviewee, the fact that the EIA

process has been started in Ethiopia at all is a big achievement, as

EIA cannot attain a high level of effectiveness within a short

period. Since EIA is a process, it will grow gradually.


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When it is observed in a general manner, the EISR prepared and

presented by many consulting firms does not meet the draft

guidelines prepared by EPA. (Interview, Solomon) Manyconsulting firms write their assumptions instead of describing the

actual situation. This is particularly true with the baseline

information. Moreover, facts often appear in the EISR that are not

contextualized to the project at hand.

The other aspect of capacity relates to the duties of the EPA. The

EPA is a regulatory organ, which is accountable to the Prime

Minister (see Art. 3(2) of Proclamation 295 of 2002). EPA is

expected to regulate the activities carried out not only by private

project owners, but also by the government. However, it is not

organized in such as manner that it could effectively regulate the

activities of government-owned projects. Most government offices

are hierarchically at a higher level than the EPA, which prevents the

EPA from regulating the activities of those government offices.

Regulatory organs need to have sufficient powers or they willremain crippled. EPA can do nothing, at least at the moment, if

some government offices want to disobey the EIA law.

The EISR review process carried out by the applicant is usually not

that effective. The EISR documents are usually bulky documents.

As there is not a sufficient number of experts in the government,

agencies are overburdened and cannot review the EISR in amanner that is expected of them. It is very difficult to get a quality

EIA process in such a stressful environment. For instance, the

EISR is dispatched to different sections for review, depending on

their specialization. The reviews obtained from most of these

sections do not meet the standards of the draft guidelines. Because

of this, the Department of EIA Service is now under great pressure

and unfinished work has been piling up in the department.


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EPA is not a financially strong government organ. That is, the

budget allocated to it is not commensurate with its vast regulatory

tasks. For instance, in the 2000 Ethiopian budget year the totalmoney allocated to EPA was Birr 3,907,642. From this amount,

2,348,300 was intended to cover the salaries of the employees, and

the remaining balance, about one and a half million birr, was

intended to cover all of the EPAs other expenses (EPA, 2007).

According to many experts at the EPA, this amount is far too small

to run the EIA process and fulfill all the agencys other duties.

The other problem associated with the EPA is the lack of

infrastructure, meaning Internet service, environmental

laboratories, a good library service, etc. The Department of EIA

Service in the EPA is expected to communicate with many

organizations, project owners, consulting firms, government

offices, international organization, etc. These communications

involve exchanging bulky document, which often contain lots of

pictures. Unless the Department is equipped with powerfulcomputers and quality Internet service, it will remain a difficulty to

download and send materials and documents to the concerned

organs.

Needless to say that well equipped environmental laboratories are

required to conduct quality reviews on EISR and for the follow-up

purposes after approval of the EISR. EPAs environmentallaboratories are not well equipped to facilitate a quality EIA

process; although there are now efforts being made to improve the

quality of service from the laboratories.

EIA is an extremely dynamic process, and those experts who are

Overview of EIA-Book

Documents

Transcript of Overview of EIA-Book